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Study: Drivers Keeping Cars Longer

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The Associated Press

Published: February 22, 2008

Updated: 02/21/2008 08:33 pm

DETROIT - People are keeping their cars and trucks longer as quality improves and the uncertain economy makes new purchases less appealing, according to a study released this week by automotive consulting firm R.L. Polk & Co.

Polk said the median age of cars on U.S. roads was 9.2 years in 2007. That ties the previous year's record high. In 2007, 41.3 percent of all cars were 11 years or older, compared with 40.9 percent the year before.

The median age for trucks and sport utility vehicles rose 4 percent to 7.1 years. Dave Goebel, a consultant for Polk's aftermarket team, said those numbers are starting to reflect a surge in truck and SUV purchases in the mid- to late 1990s.

Goebel said he expects the average age of trucks and SUVs will rise and eventually be on par with cars.

Purchases of new cars fell 3 percent in the United States in 2007 as a combination of factors, including high gas prices and the housing crisis, weighed on consumers and led many to put off buying new cars.

But Goebel said increasing durability, not the economy, is the main driver of rising vehicle age.

"Each new model year the technology continues to get better and there are fewer components that fail, so we expect to see these trends continue," Goebel said.

The Service Contract Industry Council, a trade group for providers of extended warranties, said it also sees evidence that people are keeping their vehicles longer. Despite the 3 percent drop in sales last year, there was a 3 percent to 7 percent increase in the number of auto service contracts sold as buyers sought more coverage than the traditional three-year manufacturers' warranty, according to Tim Meenan, the executive director of the council.

The group expects 5 million people to purchase auto service contracts this year. The contracts often cover components that manufacturers' warranties don't, such as electronics or a rental car during repairs, and may cover vehicles up to seven years.

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